ITEM 8.01 Other Events

CapitalSouth Bancorp (the "Company") filed a Registration Statement on Form S-1 with the Securities and Exchange Commission on June 11, 2008, relating to (i) an offering to current stockholders of non-transferable subscription rights to purchase shares of Company common stock and (ii) a concurrent offering of shares of common stock to standby purchasers. On June 13, 2008, the Company issued a press release announcing the rights offering. A copy of the press release is attached to this report on Form 8-K as Exhibit 99.1.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.

You may obtain a written prospectus for the offering meeting the requirements of
Section 10 of the Securities Act of 1933, as amended, by writing to CapitalSouth Bancorp, 2340 Woodcrest Place, Birmingham, Alabama 35209, Attention: Carol Marsh, Chief Financial Officer.

This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Securities may not be sold nor may offers to buy be accepted prior to the effectiveness of a registration statement nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.

ITEM 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release dated June 13, 2008.

---